KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
NASDAQ:KRT - Nasdaq - US48563L1017 - Common Stock - Currency: USD
Taking everything into account, KRT scores 6 out of 10 in our fundamental rating. KRT was compared to 49 industry peers in the Trading Companies & Distributors industry. KRT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KRT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KRT had positive earnings in the past year.
In the past year KRT had a positive cash flow from operations.
Each year in the past 5 years KRT has been profitable.
Each year in the past 5 years KRT had a positive operating cash flow.
1.2 Ratios
KRT has a better Return On Assets (9.68%) than 79.59% of its industry peers.
KRT has a Return On Equity of 19.71%. This is in the better half of the industry: KRT outperforms 73.47% of its industry peers.
With a decent Return On Invested Capital value of 11.60%, KRT is doing good in the industry, outperforming 79.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KRT is above the industry average of 9.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 19.71% | ||
| ROIC | 11.6% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
1.3 Margins
With a decent Profit Margin value of 7.02%, KRT is doing good in the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Profit Margin of KRT has grown nicely.
KRT has a Operating Margin of 8.88%. This is in the better half of the industry: KRT outperforms 63.27% of its industry peers.
In the last couple of years the Operating Margin of KRT has grown nicely.
KRT has a Gross Margin of 38.89%. This is in the better half of the industry: KRT outperforms 65.31% of its industry peers.
KRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.88% | ||
| PM (TTM) | 7.02% | ||
| GM | 38.89% |
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
2. Health
2.1 Basic Checks
KRT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KRT has more shares outstanding than it did 1 year ago.
KRT has more shares outstanding than it did 5 years ago.
KRT has a better debt/assets ratio than last year.
2.2 Solvency
KRT has an Altman-Z score of 4.89. This indicates that KRT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KRT (4.89) is better than 75.51% of its industry peers.
The Debt to FCF ratio of KRT is 1.00, which is an excellent value as it means it would take KRT, only 1.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KRT (1.00) is better than 85.71% of its industry peers.
KRT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KRT (0.31) is better than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.89 |
ROIC/WACC1.17
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.86 indicates that KRT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.86, KRT is doing good in the industry, outperforming 75.51% of the companies in the same industry.
A Quick Ratio of 1.53 indicates that KRT should not have too much problems paying its short term obligations.
The Quick ratio of KRT (1.53) is better than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for KRT have decreased strongly by -12.22% in the last year.
Measured over the past years, KRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 75.29% on average per year.
The Revenue has been growing slightly by 6.23% in the past year.
Measured over the past years, KRT shows a quite strong growth in Revenue. The Revenue has been growing by 13.45% on average per year.
EPS 1Y (TTM)-12.22%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%-17.5%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
Based on estimates for the next years, KRT will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y1.31%
EPS Next 2Y6.13%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year9.77%
Revenue Next 2Y8.53%
Revenue Next 3Y8.05%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.67, the valuation of KRT can be described as rather expensive.
KRT's Price/Earnings ratio is in line with the industry average.
KRT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.72, KRT is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as KRT.
When comparing the Price/Forward Earnings ratio of KRT to the average of the S&P500 Index (22.30), we can say KRT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KRT.
KRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KRT is cheaper than 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KRT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)15.06
PEG (5Y)0.26
EPS Next 2Y6.13%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
KRT has a Yearly Dividend Yield of 5.23%, which is a nice return.
Compared to an average industry Dividend Yield of 2.70, KRT pays a better dividend. On top of this KRT pays more dividend than 95.92% of the companies listed in the same industry.
KRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
5.2 History
KRT has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
124.78% of the earnings are spent on dividend by KRT. This is not a sustainable payout ratio.
DP124.78%
EPS Next 2Y6.13%
EPS Next 3Y7.15%
NASDAQ:KRT (6/4/2025, 1:10:10 PM)
31.08
-0.47 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners26.2%
Inst Owner Change5.28%
Ins Owners66.17%
Ins Owner Change0.13%
Market Cap623.46M
Analysts74.29
Price Target32.13 (3.38%)
Short Float %2.27%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend1.55
Dividend Growth(5Y)N/A
DP124.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.42%
Min EPS beat(2)-19.5%
Max EPS beat(2)12.67%
EPS beat(4)1
Avg EPS beat(4)-8.73%
Min EPS beat(4)-19.5%
Max EPS beat(4)12.67%
EPS beat(8)3
Avg EPS beat(8)5.12%
EPS beat(12)4
Avg EPS beat(12)5.77%
EPS beat(16)7
Avg EPS beat(16)7.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.69%
Revenue beat(12)1
Avg Revenue beat(12)-2.49%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)-4.55%
EPS NQ rev (1m)20.62%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)3.76%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 16.72 | ||
| P/S | 1.45 | ||
| P/FCF | 12.92 | ||
| P/OCF | 12.69 | ||
| P/B | 4.07 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 10.47 |
EPS(TTM)1.58
EY5.08%
EPS(NY)1.86
Fwd EY5.98%
FCF(TTM)2.41
FCFY7.74%
OCF(TTM)2.45
OCFY7.88%
SpS21.47
BVpS7.64
TBVpS7.45
PEG (NY)15.06
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 19.71% | ||
| ROCE | 15.17% | ||
| ROIC | 11.6% | ||
| ROICexc | 14.93% | ||
| ROICexgc | 15.23% | ||
| OM | 8.88% | ||
| PM (TTM) | 7.02% | ||
| GM | 38.89% | ||
| FCFM | 11.21% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
ROICexc(3y)15.6%
ROICexc(5y)14.51%
ROICexgc(3y)15.92%
ROICexgc(5y)14.83%
ROCE(3y)16.55%
ROCE(5y)16.56%
ROICexcg growth 3Y16.55%
ROICexcg growth 5Y29.66%
ROICexc growth 3Y16.65%
ROICexc growth 5Y29.13%
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 4.59% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 19.07 | ||
| Cash Conversion | 85.64% | ||
| Profit Quality | 159.74% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 4.89 |
F-Score5
WACC9.91%
ROIC/WACC1.17
Cap/Depr(3y)16.22%
Cap/Depr(5y)87%
Cap/Sales(3y)0.52%
Cap/Sales(5y)2.54%
Profit Quality(3y)142.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.22%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%-17.5%
EPS Next Y1.31%
EPS Next 2Y6.13%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)6.23%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%8.38%
Revenue Next Year9.77%
Revenue Next 2Y8.53%
Revenue Next 3Y8.05%
Revenue Next 5Y5.98%
EBIT growth 1Y-8.7%
EBIT growth 3Y20.59%
EBIT growth 5Y47.51%
EBIT Next Year37.56%
EBIT Next 3Y15.75%
EBIT Next 5YN/A
FCF growth 1Y-7.54%
FCF growth 3Y118.66%
FCF growth 5YN/A
OCF growth 1Y-10.78%
OCF growth 3Y76.82%
OCF growth 5YN/A